SendMoney.org.uk

Compare exchange rates, send money abroad and online

Tue 19 Mar 2024 02:48GMT

Exchange Rate Outlook: RBA Rate Bets Drag ?Aussie? Lower

Published: 1 May at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Greece,

Pound Sterling
Sterling broadly softened on Friday as the UK’s Markit Manufacturing PMI provided cause for concern. The gauge of the nation’s manufacturing sector was shown to have fallen to 51.9 from 54.0, taking it closer to the 50 mark separating growth from contraction, and the Pound accordingly dropped to 1.35 against the Euro.

Euro
At the close of the week the Euro was buoyed by the news that Greece presented its creditors with a list of reform proposals. The common currency had previously gained as a result of a report showing that the Eurozone emerged from deflation and continued trending higher against rivals like the US Dollar and Pound.

US Dollar
Although the week’s poor US growth data and dovish policy statement from the Federal Open Market Committee continued to weigh on the US Dollar on Thursday, the safe-haven currency was able to rally as domestic initial jobless claims fell dramatically. Should the US ISM Manufacturing index show improvement (as is expected to be the case) the ‘Greenback’ could move higher before the close of the day.

Australian Dollar
Even though Australian Manufacturing data showed improvement and China’s Manufacturing PMI didn’t decline as expected, the Australian Dollar closed out the South Pacific session trading in a softer position. Demand for the ‘Aussie’ eased as bets the Reserve Bank of Australia will cut interest rates next week climbed.

New Zealand Dollar
The New Zealand Dollar recorded broad-based declines as Fonterra (New Zealand’s largest dairy producer) slashed its milk payout forecasts. Speculation that the Reserve Bank of New Zealand will follow the RBA’s lead and cut borrowing costs also had a negative impact on the ‘Kiwi’.

Canadian Dollar
Although Canada’s growth data for February was more positive than anticipated, the Canadian Dollar softened against several of its most-traded currency counterparts on Friday. The ‘Loonie’s losses were largely due to a report showing that oil supply was at a multi-year high in April. Today’s domestic manufacturing figure is likely to impact Canadian Dollar trading.
As of Friday, 1st May 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3518, GBP USD exchange rate was 1.5138, GBP AUD exchange rate was 1.9287, GBP NZD exchange rate was 2.0088, GBP CAD exchange rate was 1.8407, and GBP CNY exchange rate was 9.3897.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

Live Exchange Rates